The School Funding Challenge
Every one of the 550 public school districts in Michigan is in the middle of a state-wide public school funding crisis.
- Proposal A, enacted into law in 1994, shifted primary funding of schools from local property taxes to a state-allocated annual grant, based on the number of students enrolled in each school district. In good economic times, the state was able to increase the size of this grant each year. But in the current economic downturn, the state has actually reduced the annual allocation, and is warning that it will make additional cuts next year.
- The state and federal government have imposed unfunded mandates on school districts and transferred financial obligations from the state to local level.
- Changing demographics in Okemos have caused our annual school enrolment to trend downward, resulting in less money from the state.
- State law prohibits school districts from raising additional money by increasing property taxes or issuing bonds, expect for very limited purposes, essentially buildings and repairs, technology, and school buses.
The Okemos school district has been forced to cut nearly $8.5 million from its annual operating budgets over the past 8 years and to draw down its Fund Balance (similar to a family’s “rainy day fund”) by another $1.6 million.
The district has:
- Closed schools and reconfigured others to reduce costs while maintaining optimal class sizes and student / teacher ratios.
- Reduced or eliminated reading consultants, science coordinators, counselors, secretaries, computer and media center coordinators, assistant coaches, and student supervisors.
- Postponed, reduced or cancelled purchases of textbooks, library books, audio-visual materials and classroom supplies.
- Reduced electives, cut funding for many after-school clubs and extracurricular activities, and increased sports participation fees.
This coming school year, even deeper cuts will have to be made.
Facing a $3.2 million shortfall in the 2010 – 2011 school year, the district is considering:
- Eliminating additional administrators, counselors, library specialists, reading specialists, secretaries and other district-wide personnel;
- Reducing or eliminating funding for middle school and high school athletics;
- Reducing Transportation;
- Outsourcing custodial positions
Since we’re not willing to let Michigan’s budget problems put our children’s future at risk, the Okemos Education Foundation has created a Strategic Fund to protect and restore essential learning opportunities.

